NASDAQ$REAL

RealReal Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Announced second quarter 2020 results, with GMV trends improving significantly since Q1 and continued into July.

The RealReal reported a decrease in GMV and total revenue for Q2 2020 compared to the previous year. However, GMV trends improved throughout the quarter and into July. The company is focused on returning to sustained growth through supply acquisition and operational optimization.

  • Gross Merchandise Volume (GMV) decreased 20% year over year to $182.8 million.
  • Total Revenue decreased 21% year over year to $57.4 million.
  • Gross Profit decreased 22% year over year to $35.8 million.
  • The company conducted approximately 25,000 virtual appointments in Q2 which improved supply acquisition.

Headline financials

Total Revenue

$57.4M

Previous: $71M-19.1%
EPS (adj)

-$0.42

Previous: -$0.28-50.0%
Gross Merchandise Value

$183M

Previous: $228M-20.0%
Active Buyers

612

No prior period
Average Order Value

$417.00

Previous: $453.00-7.9%
Number of Orders

438.4K

Previous: 505.0K-13.2%
Take Rate

36.0%

Previous: 36.6%-1.6%
Capital Expenditures

-$10.9M

Previous: -$10M-8.2%
Free Cash Flow

-$53.8M

Previous: -$36.9M-45.6%
Net Income

-$42.9M

Previous: -$26.9M-59.6%
Operating Income

-$43M

Previous: -$25.3M-69.6%
Gross Profit

$35.8M

Previous: $46.1M-22.3%
Cash & Equivalents

$304M

Previous: $53.3M+470.9%
Total Assets

$634M

Previous: $158M+301.0%
Stock-Based Comp

$6.13M

No prior period

Revenue & EPS history

RealReal · Revenue · Quarterly

$57.4M

Q2 2020-19.1%vs Q2 2019
Beat estimate in 6 of 11 quarters(55%)
ActualEstimate

Revenue by segment

RealReal · $57.4M total across 2 segments · Q2 2020

  • Consignment
    $46.9M-22.0%
  • Direct
    $10.5M-13.3%

Forward guidance

Given limited near-term visibility, the company elects to not provide an updated financial outlook.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-2.0%

Avg return

Earnings day

+2.3%

Avg return

5 days after

-0.3%

Avg return

30 days after

33%

9 / 27 earnings

Positive

+61.4%

Q4 2023

Best reaction

-30.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.1%-28.2%-31.8%
Q4 2025-1.5%-2.1%-30.8%
Q3 2025+37.7%+23.6%+27.2%
Q1 2025-30.6%-21.8%-21.7%
Q4 2024-18.8%-0.5%-31.5%
Q3 2024+22.4%+25.8%+105.7%
Q2 2024-23.2%-21.0%-26.5%
Q1 2024-3.1%-1.9%-10.0%
Q4 2023+61.4%+118.1%+128.7%
Q3 2023+25.8%+30.8%+43.4%
Q2 2023+12.1%+17.0%+19.3%
Q1 2023-10.6%-18.2%+24.1%
Q4 2022+11.2%+21.6%-11.9%
Q3 2022-15.8%+18.0%+9.4%
Q2 2022-14.1%-19.4%-40.7%
Q1 2022-25.4%-18.7%-33.4%
Q4 2021-0.9%+11.7%-1.6%
Q3 2021+19.4%+21.1%+3.4%
Q2 2021-18.6%-18.4%-27.5%
Q1 2021-27.9%-36.6%-17.2%
Q4 2020-12.0%-9.5%-25.4%
Q3 2020-9.1%-14.9%-4.5%
Q2 2020+1.9%+12.3%+3.8%
Q1 2020+5.7%+5.7%+19.1%
Q4 2019+0.0%-6.4%-48.8%
Q3 2019-15.5%-23.0%-24.4%
Q2 2019-20.1%-3.6%-5.4%
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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